KTY.WA WACC - Weighted Average Cost of Capital

The WACC of Grupa Kety SA (KTY.WA) is 9.6%.

The Cost of Equity of Grupa Kety SA (KTY.WA) is 10.15%.

The Cost of Debt of Grupa Kety SA (KTY.WA) is 6.30%.

	Range	Selected
Cost of equity	9.00% - 11.30%	10.15%
Tax rate	14.40% - 16.50%	15.45%
Cost of debt	6.10% - 6.50%	6.30%
WACC	8.6% - 10.7%	9.6%

WACC

KTY.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.55	0.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	11.30%

Tax rate	14.40%	16.50%
Debt/Equity ratio	0.13	0.13
Cost of debt	6.10%	6.50%

After-tax WACC	8.6%	10.7%


Selected WACC	9.6%

KTY.WA's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for KTY.WA:

cost_of_equity (10.15%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.55) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.